Heat treating of the barrel steel is not required. Rich, the next time you do a front sight base please do a video of the machining process. For production of luger barrels I would think that an EDM process would be the simplest method to achieve the front sight base and muzzle ring profile but for one barrel at a time as you do them your methodology makes perfect sense. I also think that your method of creating the sight base AFTER the barrel is installed & headspaced results in a perfect vertical alignment with the rear sight! Absolute genius IMHO!
If you end up hosting your photos over on CNCguns remember that you can surround the URL for the photos with IMG and /IMG tags in square brackets [ ] and the image will appear in your post. I am not able to increase your photo gallery space but perhaps the ADMIN might be able to do that. Keep up the great work.
P.S. Make a second barrel & sell it and use the money to get you a broadband internet connection!